This paper presents an analytical optimization of a remote power system for a hypothetical Alaskan village. The analysis considers the potential of generating renewable energy (e.g., wind and solar), along with the possibility of using energy storage to take full advantage of the intermittent renewable sources available to these villages. Storage in the form of either compressed hydrogen or zinc pellets can then provide electricity from hydrogen or zinc-air fuel cells whenever wind or sunlight are low. The renewable system is added on to the existing generation system, which is based on diesel engines. Results indicate that significant reductions in fossil fuel consumption in these remote communities are cost effective using renewable energy combined with advanced energy storage devices. A hybrid energy system for the hypothetical village can reduce consumption of diesel fuel by about 50% with annual cost savings of about 30% by adding wind turbines to the existing diesel generators. Adding energy storage devices can further reduce fuel use, and depending on the economic conditions potentially reduce life-cycle costs. With optimized energy storage, use of the diesel gensets can be reduced to almost zero, with the existing equipment only maintained for added reliability. However, about one quarter of the original fuel is still used for heating purposes. Published by Elsevier Science Ltd.